Lancashire sees energy premiums rise after BP tragedy

8th Nov 2010 09:30

It's an ill wind that blows nobody good and to prove it insurance company Lancashire Holdings said it has seen a broad increase in demand and a strengthening of premium rates in the energy market after the Deepwater Horizon rig tragedy.The company has been reducing its exposure to property insurance while actively seeking more business in the energy sector. Gross written premiums in the third quarter of 2010 totalled $135.0m, down from $139.7m a year earlier.For the first nine months of 2010 gross written premiums still remain ahead of last year, however, at $595.1m versus $524.4m.Third quarter net profit after tax eased to $106m from $108.7m.Total investment return improved to 2.0% from 1.6%, while the net loss ratio dipped to 9.4% from 10.8%.The combined ratio edged up to 39.2% from 39.1% in the third quarter of last year, reflecting "a quieter claims environment, particularly in the property catastrophe area," group chief executive officer Richard Brindle said. Chief financial officer (CFO) and president of the group, Neil McConachie, had a pleasant surprise for shareholders announcing a special dividend of $1.40 (about 86p) per share; the company paid a special dividend of $1.25 at the third quarter state last year. McConachie is to give up the CFO role in the new year to be succeeded by Elaine Whelan, currently deputy group CFO.In another management change, Alex Maloney has been made a director and will become group chief underwriting officer, leading the group's underwriting operations.Maloney has been with the company since 2005.